An analysis of availability of Medicare+Choice, commercial HMO, and FEHBP plans in rural areas: implications for Medicare reform.

Abstract

This Policy Brief examines the viability of introducing private competition into the Medicare program by studying the availability of Medicare+Choice (M+C), commercial HMO, and Federal Employees Health Benefits Program (FEHBP) plans in rural (nonmetropolitan) counties. The Brief also presents evidence regarding the variables that influence plan availability and impact plan choice across counties in the U.S. The findings in this Brief will be useful to policymakers considering using a competitive model to design a Medicare prescription drug benefit or to redesign the entire Medicare program. As changes in the Medicare program are considered, the information in this Brief will provide background regarding rural participation in earlier Medicare program changes and in other programs said to be models for change.